Latest Industry News Briefs Courtesy of PMTA
USDOT Awards Nearly $60 Million in Advanced Vehicle Technology Grants to Arizona, Texas and Utah to Serve as National Models and Help Save Lives on Our Nation’s Roadways
WASHINGTON, DC… The U.S. Department of Transportation’s Federal Highway Administration (FHWA) announced that it is awarding $60 million in grants under the Saving Lives with Connectivity: Accelerating V2X Deployment program to advance connected and interoperable vehicle technologies. The grants to recipients in Arizona, Texas and Utah will serve as national models to accelerate and spur new deployments of vehicle-to-everything (V2X) technologies.
“As this Department explores every measure that can help reduce roadway fatalities, connected vehicle technology—like V2X—has potential to make roads safer and save lives,” said U.S. Secretary of Transportation Pete Buttigieg. “The grants we’re announcing today are helping accelerate the development and adoption of potentially life-saving V2X technology nationwide.”
The Saving Lives with Connectivity: Accelerating V2X Deployment initiative is focused on road safety, mobility, and efficiency through technology that enables vehicles and wireless devices to communicate with each other and with roadside infrastructure and provide warnings. This means cars will be able to effectively communicate with traffic devices and the roadside.
“These grants are leading the way in promoting and deploying V2X technologies to explore the potential to save lives on our nation’s highways,” said Federal Highway Administrator Shailen Bhatt. “The funding provided today will help accelerate the technology so that we can deploy it on a national scale and provide new tools to reduce deaths on our nation’s roads and highways.”
The grants announced today will promote the deployment of V2X technologies with the goal of advancing the full lifesaving potential of V2X communication, while ensuring connected technologies communicate securely and without harmful interference across a variety of devices and platforms.
“I’m proud of the partnerships between Federal, State, local and tribal government agencies for coordinating all of these technologies to improve safety,” said Principal Deputy Assistant Secretary for Research and Technology Dr. Robert C. Hampshire.
The grants announced are as follows:
Arizona: The Maricopa County DOT will receive $19.6 million to lead a largescale deployment of V2X technologies, relying primarily on 5.9 GHz communications, to connect 750 physical roadside units and virtual roadside units to an estimated 400 vehicle onboard units targeting transit, emergency and freight fleets. The project will deploy Emergency Vehicle Preemption, Vulnerable Road User detection, Transit Signal Priority, and Freight Signal Priority applications in the Cities of Phoenix, Tolleson, Avondale and unincorporated Maricopa County, as well as along ADOT’s US 60.
Texas: Texas A&M Transportation Institute will receive $19.2 million to deploy V2X technology in the Greater Houston area, the City of College Station, including near the campus of Texas A&M University (TAMU), and the corridors connecting these two metropolitan cities. The project serves to holistically enhance safety, efficiency, and overall mobility for vulnerable road users (VRU) situated at signalized intersections, emergency responders navigating through varying traffic scenarios, transit operators seeking efficient routes, workers operating within construction zones, and everyday motorists.
Utah: The Utah DOT will receive $20 million toward V2X deployment sites in three states – Utah, Colorado and Wyoming – each representing a broad variety of population densities, demographics, jurisdictions, topography, and transportation facilities. The project covers all of Utah, I-80 through the entire length of Wyoming, and major portions of Colorado, including the Denver Metro Area, I-70 from Denver to the Utah border, and I-25 through Colorado. The applications focus on safety, mobility, and environment, and support the ability to demonstrate measurable impact and address critical needs including connected intersection, weather impact, curve speed warning, traveler information and vulnerable road user and other safety alert technologies.
More information on the V2X grants is available here: FHWA Operations - Improving Day-to-Day Operations (dot.gov)
Truckstop and Bloomberg Intelligence Survey Shows Stronger Demand May Be Around the Corner
BOISE, ID… —The Bloomberg | Truckstop semi-annual freight broker survey shows brokers are hopeful that demand could pick up in the latter half of the year.
“Though freight brokers continued to face challenging demand and rates in the first half of the year, there are some signs that the worst may be over,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “We believe a return to seasonal demand, higher import levels and inventory restocking will help drive a recovery later this year.”
The Bloomberg | Truckstop first half 2024 Broker survey shows brokers are hopeful that the market may be finally moving toward equilibrium:
* Stronger demand may be around the corner: Most brokers appear optimistic that volume growth is just around the bend, despite demand challenges. About 49% project a volume increase in the next 3-6 months, 31% expect flat loads and 20% anticipate a decline.
* Spot rates may have hit a trough: An increasing number of brokers believe that rates have hit bottom, with 76% of respondents projecting rates to stay flat or increase over the next 3-6 months, three percentage points higher than the second half of 2023. Truckstop’s Market Demand Index, a measure of relative demand in the North American trucking market, rose 24% on average in 2Q from last year.
* Broker margins remain under strain: About 44% of respondents noted lower gross margins in the first half of 2024 compared to that same time frame in 2023. This is 13 percentage points worse than what brokers indicated in our 2H 2023 survey. Brokers are not optimistic about margins for the rest of the year as 30% expect margins to deteriorate over the next six months, seven percentage points more than in 2H 2023. Increased use of tools powered by artificial intelligence could help boost margins by improving pricing, productivity gains and network optimization. The brokerage industry is still in the early stages of AI adoption — just 36% of respondents are deploying such tools within their operations.
“Despite the improved outlook over the past six months, brokers remain skeptical about their ability to increase gross margins,” said Kendra Tucker, chief executive officer, Truckstop. “Truckstop remains dedicated to providing tools that help brokers operate with speed and confidence, enabling them to move faster, gain efficiencies and grow profits.”
The Bloomberg | Truckstop survey of freight brokers provides timely channel checks into the market’s health. The most recent sample size was 113, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (70%) have 1-50 employees. Of those surveyed, non-asset-based brokers made up the biggest group (44%), followed by broker agents (25%) and third-party logistic providers (16%).
The complete survey is available to Bloomberg Terminal subscribers via BI.
To learn how Truckstop is helping move the freight community forward, visit https://truckstop.com.
TAT Joins Trucking Partners In Support Of National Human Trafficking Database Act – S.4534
“While TAT doesn’t typically weigh in on legislation unless it is directly tied to anti-trafficking training within the transportation industry,” TAT Executive Director Esther Goetsch explained, “this bill’s passage would be an enormous win for the entire anti-trafficking movement and in the nation’s ability to understand the prevalence of the crime within our nation and how better to combat it.”
The bill in question, introduced by U.S. Senators Marsha Blackburn (R) of Tennessee and Amy Klobuchar (D) of Minnesota, would establish a national human trafficking database at the Federal Bureau of Investigation (FBI) and incentivize certain state law enforcement agencies to report data to the database. That data would include:
* The human trafficking risk assessment index score, indicating the presence and prevalence of trafficking for every county in every state
* The names of all anti-trafficking organizations operating in each county
* The total number of state-level human trafficking prosecutions collected in coordination with local District Attorneys’ offices
This bill will address a critical gap in the nation's current data collection efforts, enhancing the ability to understand the full scope of human trafficking and enabling those working on anti-trafficking efforts to develop more effective strategies to combat it. Thorough data analysis will guide the development of preventative measures and policies to reduce the incidence of human trafficking.
To that end, TAT has worked on compiling a letter of support, alongside its partners at the American Trucking Associations (ATA), Owner/Operator Independent Drivers Association (OOIDA) and 49 state trucking associations to distribute among their networks. The American trucking industry has proven itself to be a leader in the fight against human trafficking, recognizing its role in combating this crime. As an industry that traverses the nation’s highways and intersects with countless communities, this industry is uniquely positioned to identify and report suspicious activities that may indicate human trafficking and has been a leader for more than a decade in doing so.
Over $108 Million in Transportation Investments to Improve Infrastructure and Road Safety on Federal and Tribal Lands
WASHINGTON, DC… The U.S. Department of Transportation’s (USDOT) Federal Highway Administration (FHWA) announced over $108 million in grant awards for 85 projects that will improve transportation and reduce roadway fatalities and serious injuries on Federal and Tribal lands. The grants, from FHWA’s Nationally Significant Federal Lands and Tribal Projects and Tribal Transportation Program Safety Fund programs, are the latest in a series of efforts by the Biden-Harris Administration to invest in transportation improvements and improve safety, mobility, economic development, and equity on Federal and Tribal lands.
“Good transportation infrastructure is vital to the well-being of those traveling on Federal Lands and for those living and working in Native American, Alaska Native, and other indigenous peoples communities,” said U.S. Transportation Secretary Pete Buttigieg. “The grants we are announcing today will help make travel in these areas safer.”
“Improving safety for those traveling on Tribal lands is of paramount importance to the U.S. Department of Transportation,” said Assistant Secretary for Tribal Government Affairs Arlando Teller. “This funding can improve roads, intersections, sidewalks and bike paths in these communities for all who use them.”
“These grants are yet another example of the Biden-Harris Administration’s efforts to help those who live, work, and travel on Federal and Tribal lands by making their journeys safer,” said Federal Highway Administrator Shailen Bhatt. “This funding will also improve mobility, access, and economic opportunity in dozens of communities.”
At an event at Yellowstone National Park today, FHWA Administrator Bhatt announced $88 million in grants to five projects nationwide under the Nationally Significant Federal Lands and Tribal Projects Program, specifically:
* $22 million for the National Park Service’s Reconstruct Norris to Golden Gate: Phase 3 of the Grand Loop Road project at Yellowstone National Park in Wyoming. The project will reconstruct a 0.7-mile segment of the Norris to Golden Gate roadway segment of the Grand Loop Road, install improvements to separate pedestrians from vehicular traffic, and upgrade vehicle pullouts and parking areas in the park.
* $24.1 million for the Poarch Band of Creek Indians’ Jack Springs Road project in Escambia County, Alabama. Funding will be used to upgrade a dirt road to a paved road with wider lanes and shoulders, as well as for resurfacing, road expansion, the installation of sidewalks and shoulder rumble strips and intersection improvements.
* $20 million for the Eastern Band of Cherokee Indians’ Greater Rural Access and Highways to Accelerate Mobility project in Graham County, North Carolina. As the grant recipient, the North Carolina Department of Transportation will use the funding to construct a 12-mile portion of Corridor K of the Appalachian Development Highway System on behalf of the Eastern Band of Cherokee Indians, the project sponsor.
* $11 million for the Reconnecting the Historic Columbia River Highway project in Hood River, Oregon. Funding will be used by the Oregon Department of Transportation on behalf of the U.S. Forest Service, the project sponsor, to complete a 37-year effort to restore and reconnect the 73-mile Historic Columbia River Highway and State Trail.
* $11.1 million for the U.S. Fish and Wildlife Service’s Crab Orchard Greenway Multimodal Network at Crab Orchard National Wildlife Refuge project in Carterville, Illinois. The project will help complete the Crab Orchard Greenway, a continuous regional multimodal trail along the Illinois Route 13 corridor, and provide alternative transportation opportunities to several communities near Carterville.
FHWA also announced $20.5 million in Tribal Transportation Program Safety Fund grants for 80 projects today. The full list of grant recipients can be found at Tribal Transportation Program Safety Fund.
President Biden’s Bipartisan Infrastructure Law provides up to $355 million per year in Nationally Significant Federal Lands and Tribal Projects for Fiscal Years (FY) 2022-2026. The law also modifies the program by requiring that half of all funding go to projects on Tribal transportation facilities and increases the Federal share of Tribal transportation facility projects to 100 percent. The infrastructure law also provides the largest funding level ever for the Tribal Transportation Program, increasing the amount authorized from $2.4 billion to $3 billion for FY 2022-2026.
In the coming weeks, FHWA expects to make additional funding available under the Nationally Significant Federal Lands and Tribal Projects Program through a Notice of Funding Opportunity. To obtain updates on this and other future funding opportunities, please sign up for the Office of Tribal Transportation mailing list.
To further assist the 574 Federally Recognized Tribes and their transportation priorities, FHWA has developed a Transportation Funding Opportunities for Tribal Nations guide which provides information on new highway programs created under the Bipartisan Infrastructure Law as well as existing highway and bridge transportation funding programs.
Commonwealth Court Hears Arguments In PMTA Members’ CARB Challenge
By Rebecca Oyler, PMTA
On Wednesday, June 5, Pennsylvania’s Commonwealth Court had its first hearing to consider arguments in the case Peters Brothers, Inc., et. al. v. DEP et. al. challenging Pennsylvania’s delegation of heavy duty truck emissions rules to California’s Air Resources Board. Below is a summary of this hearing.
With the help of attorneys at the Pacific Legal Foundation, PMTA and four of its members – Peters Brothers, Inc., H.R. Ewell, Inc., Kenworth of Pennsylvania, and Transteck, Inc. – filed this lawsuit against the PA Department of Environmental Protection (DEP) and the Pennsylvania Environmental Quality Board for its attempt to outsource its regulations on truck sales to California regulators. PA adopted CARB’s rules in 2002, and they automatically update every time CA’s rules change.
These updates include increasingly more stringent emissions standards for heavy diesel engines over the coming years, along with more costly warranty requirements when buying new trucks.
Central to PMTA’s argument is that the “rolling incorporation” of California’s rules violates separation of powers because it cedes the power to make law to bureaucrats at CARB who are not accountable to the people of PA. Pennsylvania citizens and businesses should have the ability to comment and raise objections before such rules are put into place or changed in PA.
In the June 5 hearing, the full Commonwealth Court considered DEP’s preliminary objections to PMTA’s arguments. At issue was whether the case should be permitted to continue or whether it should be dismissed as premature. The attorney for DEP argued:
1. PMTA and its members have no standing because the regulation isn’t currently being enforced. (DEP has delayed enforcement of the new CARB rule until MY 2027.)
2. A Pennsylvania statute blocks anyone from bringing a lawsuit unless and until DEP initiates an enforcement action.
3. The Clean Air Act requires Pennsylvania to walk in lock-step with California in order to comply with national air quality standards.
Judges on the court asked DEP’s attorney a number of questions, including whether this was an improper delegation of authority to another state. He answered that the initial CARB regulation, promulgated in 2002, was properly approved under PA’s Regulatory Review Act. And he argued that there was no constitutional problem here because Pennsylvanians can still participate in California’s rulemaking process by submitting comments on California Air Resource Board rules.
One judge noted the impact of the rule on the trucking industry, including cost, warranty, plans for the future, budget, and the ability to get equipment. She asked if it was fair that PA companies don’t have the ability to comment on something that impacts them so much. She also expressed concern that truckers are precluded from having any options to challenge the rule. The DEP attorney answered that truckers can bring a challenge after DEP begins enforcement in 2026.
Pacific Legal Foundation attorney, Luke Wake, argued for PMTA. He framed this as a case about whether Pennsylvania regulators can outsource lawmaking power to California, such that Pennsylvanians have no say in the rules affecting their affairs.
Wake was immediately asked why Pennsylvania’s statutory bar on pre-enforcement lawsuits should not preclude this case. He answered that the bar on pre-enforcement lawsuits only implicates cases contesting the Environmental Quality Board’s 2002 finding that more stringent emission standards were required to ensure compliance with federal air standards at that time. PMTA is not contesting that 2002 finding, but is instead challenging the Board’s authority to adopt a rolling incorporation of California law—which is not implicated by the statutory bar on pre-enforcement lawsuits. And further he argued that there would be a due process problem, under the federal Constitution, if Pennsylvania law precludes PMTA’s lawsuit. One should not have to violate state regulation and “bet the farm” in order to have their day in court.
Separately, Wake affirmed that PMTA has a ripe case because CARB’s warranty requirements are already in effect, and any company that ignores those California standards risks the possibility of lawsuits. Further, he argued that PMTA members need relief now because DEP has already confirmed it intends to begin enforcing new California standards beginning for Model Year 2027 vehicles; given that dealers will be negotiating presales for 2027 vehicles next summer there is no reason for the court to delay hearing PMTA’s arguments.
As to the legality of this rolling incorporation of California standards, Wake stressed that the Constitution requires that the General Assembly must make the fundamental policy decisions affecting Pennsylvanians and that the Assembly must always provide a governing standard when delegating rulemaking authority. And, as he argued, the Pennyslvania Air Pollution Control Act cannot be interpreted as allowing for a rolling incorporation because that would mean that the Assembly has decided nothing.
If the Board really has the power to follow California wherever it might go then the General Assembly has decided upon no policy or governing standard for whether or under what conditions Pennsylvania should follow California law. As he put it, that’s opening Pandora’s Box. No one in 2002 knew what standards California would impose in 2024. And no one can know what California might do in the future. As he warned, California could ban the combustible engine entirely and that would become law in Pennsylvania automatically if this rolling incorporation stands.
Wake next argued that, properly interpreted, PA’s Air Pollution Control Act prohibits “rolling incorporation” of CARB rules. As he put it, the Act requires the Board to make a fresh determination as to whether it makes sense to adopt California new standards with eyes wide open—knowing all the facts, as they exist today. For example, the Act requires that the Board must consult with PennDOT whenever its adopting rules to regulate vehicle emissions. And, as he put it, it makes no sense to say that one time consultation in 2002 was good enough because there was no way that PennDOT (or Pennsylvanians who submitted comments at that time) could have offered meaningful feedback on yet unknown standards.
Finally, Wake emphasized that PA law requires that Pennsylvanians must be allowed to comment on any new rule—which means any change in standards that have the “effect of a binding norm.” Therefore, since California’s new emissions standards have changed the legal obligations of companies in Pennsylvania, there should have been opportunity for Pennsylvanians to weigh in before those standards became effective here in the Keystone State.
During the DEP attorney’s rebuttal, he was asked whether there might be an exception to the ban on pre-enforcement challenges when there is a question about the constitutionality of a rule. The DEP attorney responded that the law doesn’t provide this exception because it prioritizes public health. He also doubled-down on his argument PMTA’s concern about third party lawsuits is speculative.
Following the hearing, PMTA and its members await the court’s decision about whether the case may proceed.
PA Turnpike to Launch Open Road Tolling in East
King of Prussia, PA… The Pennsylvania Turnpike Commission officially announced plans to convert its tolling system to Open Road Tolling (ORT) east of Reading and on the Northeast Extension in January 2025. This celebration caps a 15-year transition to further meet customers' expectations for safe, convenient, and seamless travel.
"The advent of Open Road Tolling will advance safety and allow for the safe movement of vehicle traffic across our network. Pennsylvania is the great American Getaway and Open Road Tolling will get traveling members of the public to destinations across our great Commonwealth in a safe an efficient manner," said PA Turnpike Chairman and PennDOT Secretary Michael Carroll. "It's a great day in Pennsylvania and another giant step forward for the Pennsylvania Turnpike Commission."
In an ORT system, tolls are charged electronically as customers drive at highway speeds without slowing down or stopping beneath overhead structures - called gantries - located between interchanges. Equipment on the gantry and in the roadway processes E-ZPass or Toll-By-Plate transactions. Beyond properly mounting an E-ZPass transponder, customers will not need to do anything differently in preparation for the launch.
"In January, the Pennsylvania Turnpike Commission solidifies itself once again as a national leader in transportation when we bring the future of toll collection to Pennsylvania through Open Road Tolling," said PA Turnpike CEO Mark Compton. "This move reiterates our commitment to the safety of our customers and employees, while modernizing our operations and meeting customer expectations for seamless, nonstop travel."
Intermodal Maintains Momentum in Second Quarter
CALVERTON, MD… Total intermodal volume rose 7.9 percent year-over-year in the second quarter of 2024, according to the Intermodal Association of North America’s Intermodal Quarterly report. International containers added 13.3 percent, domestic containers improved 5.0 percent, while trailers fell 20.6 percent.
"International volume provided the biggest lift for intermodal in the second quarter. Domestic equipment played a supporting role and would have had a larger impact had the decline in TOFC moves not continued,”” said Joni Casey, president and CEO of IANA. “Federal Reserve actions over the next three months will help determine whether the industry can continue this progress.”
The seven highest-density trade corridors, which collectively handled more than 60 percent of total volume, were all up in the second quarter. The Midwest-Northwest gained 21.5 percent followed by the Southeast-Southwest at 20.1 percent. The South Central-Southwest posted 13.5 percent, and the Midwest-Southwest realized 11.4 percent. The Intra-Southeast, Trans-Canada and Northeast-Midwest came in at 7.4 percent, 4.6 percent and 3.7 percent, respectively.
Total IMC volume increased 5.5 percent year-over-year in Q2, with intermodal traffic up 6.3 percent and highway loads 5.1 percent to the positive.
EPA Semitruck Emissions Regulations Headed For Unintended Consequences
By Rep. Dan Newhouse (WA-04) and Todd Spencer
Pushed by extreme environmentalists, the Environmental Protection Agency recently announced new emissions regulations for semitrucks set to take effect by 2032. While Congress and truckers both want to protect our environment, the practical implications of the agency’s overreach for small businesses and the broader economy cannot be overstated.
Trucks move a staggering $18 trillion worth of freight annually, and over 70% of freight in the U.S. is moved exclusively by truck. As was made crystal clear at the height of the COVID-19 pandemic, truckers are essential to the American economy. What’s not as well known is that 96% of trucking companies are small businesses. These are mom-and-pop trucking companies in small towns and big cities nationwide. Like all small businesses, small-business truckers often don’t have the financial or technical resources to comply with overly aggressive regulations, especially those with no return on investment.
The EPA’s new heavy-duty truck regulations are certainly drastic; they require that 25% of all semitrucks sold by 2032 be zero-emission vehicles. The only technology on the market that even comes close to complying with these regulations is battery electric trucks, which are extremely costly and have significant operational limitations. This presents insurmountable challenges that will undoubtedly throw a wrench into America’s supply chain.
With this regulation, the EPA is effectively mandating EV semitrucks while overlooking the significant hurdles that small-business truckers will face as they attempt to comply. First and foremost, current electric vehicle charging infrastructure is woefully inadequate. A notable shortage of charging stations, especially in rural areas, creates a bottleneck for long-haul truckers who need reliable access to power. They don’t have the option of charging their truck overnight. Moreover, the energy grid itself is a concern. With the rise of artificial intelligence data processing centers already competing for limited energy supplies, the added load from charging a substantial number of electric trucks could strain the grid beyond its current capacity.
Charging time and hours of service, or HOS, regulations present another challenge. Long-haul truckers are bound by strict HOS rules that limit their driving hours to ensure safety. The extended time required for charging electric trucks compared with refueling diesel tractors will make compliance with HOS rules even more challenging, significantly reduce operational efficiency and scramble delivery schedules.
Range limitations are another significant concern. Diesel trucks can travel up to 1,000 miles on a single tank of fuel. Current electric truck technology maxes out at a few hundred miles, necessitating more frequent stops, which further complicates logistics and raises costs. In cold weather, the situation becomes even more complicated, as battery performance typically declines, reducing the range and reliability of electric trucks.
The financial implications of the EPA’s regulations are backbreaking. The sticker price of electric semitrucks is more than double that of their diesel counterparts. Going from a $180,000 vehicle to one that costs over $400,000 is not feasible for small-business truckers operating on tight margins.
Electric truck advocates typically point to long-term fuel savings to justify mandating electric trucks. A comprehensive study by Ryder Systems, however, casts serious doubt on the supposed lifetime savings of these vehicles. Even if a small-business trucking operation somehow stays afloat, the cumulative costs will inevitably be passed on to consumers, leading to higher prices for goods and potentially stoking inflation.
As chairman of the Congressional Western Caucus, a group of over 100 members of the House of Representatives who advocate rural America’s priorities, and president and CEO of the Owner-Operator Independent Drivers Association, we support H.J. Res 133, which would repeal the EPA’s Phase 3 Gas Emissions Standards for Heavy-Duty Vehicles.
We also applaud the Supreme Court’s recent decision overturning the 1984 Chevron case that expanded the power of the federal bureaucracy. This decision will roll back the regulatory overreach of unelected bureaucrats, restore power to those elected by the people, and prevent future regulations from being bent to the whims of federal agencies. The EPA’s regulations here are exactly that type of action.
Nobody, including truckers, is opposed to improving the environment. But the EPA’s misguided regulations on semitrucks will have significant unintended consequences, killing small businesses and raising costs for everyone.
Dan Newhouse represents Washington’s 4th Congressional District and serves as chairman of the Congressional Western Caucus.
Todd Spencer serves as president and CEO of the Owner-Operator Independent Drivers Association, representing approximately 150,000 small-business truckers and professional drivers.
Reprinted with permission by The Washington Times
ATA Truck Tonnage Index Fell 1.6% in June
Washington, DC… American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 1.6% in June after increasing 3% in May. In June, the index equaled 113.5 (2015=100) compared with 115.3 in May.
“While giving back some of the gain from May, it appears that truck freight tonnage is slowly going in the right direction since hitting a recent low in January,” said ATA Chief Economist Bob Costello. “Despite June’s decline, the second quarter average was 0.2% above the first quarter and only 0.2% below the second quarter in 2023, which are good signs that truck freight might be finally turning the corner.”
May’s increase was revised down from our June 18 press release.
Compared with June 2023, the index decreased 0.4%. In May, the index was up 1% from a year earlier, which was the first year-over-year gain since February 2023.
The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 113.1 in June, 5.5% below May. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to traditional spot market freight.
In calculating the index, 100 represents 2015.
Trucking serves as a barometer of the U.S. economy, representing 72.6% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 11.46 billion tons of freight in 2022. Motor carriers collected $940.8 billion, or 80.7% of total revenue earned by all transport modes.
ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.
ATA Applauds Feenstra, Crapo Effort to Roll Back Electric Truck Mandate
Washington, DC… The American Trucking Associations applauded the more than 150 Members of Congress who launched a new effort to push back against the Environmental Protection Agency’s Phase 3 Greenhouse Gas emissions standards for heavy-duty vehicles. In a letter spearheaded by Congressman Randy Feenstra (R-Iowa) and Senator Mike Crapo (R-Idaho) and supported by ATA, the lawmakers called on Administrator Michael Regan to withdraw the rule.
"ATA remains opposed to EPA’s current GHG3 rule. The current state of available zero-emission technology, very limited heavy-duty charging and refueling infrastructure, and an unstable power grid make the post-2030 targets entirely unachievable,” said American Trucking Associations Senior Vice President of Legislative Affairs Henry Hanscom. “ATA believes the most effective path to fixing the serious flaws in GHG3 is through legislative and administrative means. That’s why we welcome this effort led by Congressman Feenstra and Senator Crapo calling on EPA to withdraw this unworkable rule and review the targets to account for the operational realities of trucking.”
The letter sent by the Members of Congress highlighted how EPA’s rule will disrupt the trucking industry, raise costs for American consumers, and place significant burdens on farmers and small businesses.
“This de facto mandate does not consider the realities of the commercial zero-emission vehicle (ZEV) marketplace or consider the ability for rural America to purchase these vehicles,” the lawmakers wrote. “Trucks must be affordable and reliable otherwise the intended benefits will not be realized. This rule will harm our families and businesses, increases our gas prices, and makes us more dependent on foreign supply chains – particularly China.
“Therefore, we urge you to withdraw your final rule that is both unrealistic and burdensome. This rule will only further increase costs for American families, businesses, and rural communities while fueling more inflation. We need to give Americans a choice in the cars and trucks that they drive, and affordability and performance for the trucking industry is paramount.”
Over the past several decades, the trucking industry has made tremendous strides to cut nitrogen oxide and particulate matter tailpipe emissions by 99%. As a result, 60 of today’s trucks emit what just one truck did in 1988. The trucking industry supported EPA’s Phase 1 and Phase 2 greenhouse gas regulations and worked collaboratively with the agency to set aggressive but achievable emission reduction goals on reasonable timelines. EPA’s Phase 3 rule marked a sharp departure from this successful partnership, setting unrealistic adoption rates for battery-electric trucks.
According to a recent study commissioned by the Clean Freight Coalition, full electrification of the U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment alone. A report by the American Transportation Research Institute identified the many challenges related to U.S. electricity supply and demand, electric vehicle production and truck charging requirements. At a House Transportation & Infrastructure Subcommittee hearing in April, a fleet manager for PITT OHIO shared his company’s real-world challenges deploying battery-electric trucks.
While EPA’s final rule includes lower zero-emission vehicle rates for model years 2027-2029, forced zero-emission vehicle penetration rates in the later years will drive only battery-electric and hydrogen investment, constraining fleets' choices with early-stage technology that is still unproven. The trucking industry needs technology-neutral policies that allow for innovation and alternative fuel sources like renewable diesel, which generates a lower lifecycle carbon footprint than battery-electric vehicles at a fraction of the cost.
ATA will continue to partner with champions in Congress, industry stakeholders, and federal regulators to develop realistic, technology-neutral national emissions standards that will benefit our environment and set our supply chain up for success.